State of Mining: Liberalization under the Aquino Administration and the People’s Movement Kalikasan PNE Defend Patrimony! Alliance
Philippine Mining Industry Mainly extractive Export-oriented Dominated by TNCs, local elite Dependent on foreign capital and technologies
Exploration Mine Development Extraction Initial Processing Refining & Smelting Fabricating Philippine Mining Industry
Mining Act of 1995 Investment Guarantees – Repatriation of Capital – Freedom from Expropriation – Remittance from earnings and interest on foreign loans – Freedom from requisition of properties – Confidentiality of Information Tax Holiday during recovery of pre-operating expenses for a maximum of 8 years from commercial production (FTAA) Income Tax carry forward of losses Water rights, timber rights, easement rights
Philippine Mining Statistics
National Policy Agenda on Revitalizing Mining in the Philippines (EO No ) 2003, 23 then 63 (2007) Priority Mining Projects under GMA Overall value of production in 2006 reached P68.4 billion compared to P35.2 billion in tailings dam failures since tailings dam failures in Rapu- rapu, Albay.
Employment and Taxes
Mining Agreements
Mining Concession Area July 2010 EP89,828.76NA 345,974 MPSA373, 201NA 587,340 FTAA41,19987,24990,341109,217 TOTAL514,948600, , 1871,042,531
New Trends in the Mining Industry ( ) Renewed mining offensive – Record breaking gold prices $1,300/oz (AO 09/28/10) – Rising industrial metal prices or economic security concern – New DENR Secretary and President Aquino? Entry of big local businesses – MPC/Pangilinan – San Miguel/Cojuangco – Lucio Tan, Use of greenwashing, corporate propaganda Expansion of magnetite mining with small scale mining permit Proliferation of coal mining contracts – Energy supply for local power plants – Export Continuing Militarization and Human Rights Violations in mining- affected areas
Killings of Environmental Activists
New Administration, Same Old Mining Policies Appointed Ramon Paje as DENR Secretary Increased target mining output from 2009 to 30% for 2010 (Arroyo was 10-20% only) Interfered in the South Cotabato open-pit mining ban to pursue a “win-win” solution for Xstrata and LGU Did not act on Mt. Diwalwal mining privatization Did not reverse midnight mining deals like FTAA in Palawan and MPSA in Camarines Sur (21 MPSA, 2FTAA, 13 EP) Issued logging moratorium Cancel 600 mining applications
People’s Struggle Increasing resistance at the grassroot level – Southern Tagalog (Romblon, Mindoro, Batangas, Palawan) – Eastern Visayas – Southern Mindanao Region – CARAGA Region – SoCSKSarGen Region Local government units imposing mining moratorium Continuing Legislative and Legal Actions – writ of Kalikasan – People’s Mining Bill Broadening of alliances International support
People’s Struggle
Our Call 1.Mining moratorium on Large-scale Mining Projects and Operation 2.Repeal the Mining Act of Pass the People’s Mining Bill Defend our Patrimony, Protect our Rights!